(Newser)
–
In something of an abrupt about-face, Yahoo is scrapping its original plan to spin off its prized stake in China's Alibaba Group and will instead break off the rest of its business into a new company. The change of heart announced Wednesday comes after Yahoo's board met last week to review the proposed Alibaba spin-off, as well as CEO Marissa Mayer's stalled attempts to turn around one of the Internet's best-known companies. The move is what the Wall Street Journal calls "a blow" to Mayer's turnaround, and it prolongs "the uncertainty of a 20-year-old Internet company fighting for survival."

Yahoo said its board will now look at alternatives to separate the Alibaba stake, focusing specifically on a reverse spin-off. The company said in the reverse spin-off, Yahoo assets and liabilities other than the Alibaba stake would be transferred to a newly formed company. The end result would be two separate, publicly traded companies.

Since Yahoo trades at about the value of its stock holding, there is a lot going for the idea of a split. But most Closed End Mutual Funds trade at a discount anyway, so I've always viewed Yahoo as one of those.....

iq145

Dec 9, 2015 8:52 PM CST

Marissa Mayer could challenge Alessandra Ambrosio for the title "World's Sexiest Business Woman" http://i.dailymail.co.uk/i/pix/2015/11/23/17/2EBCE16600000578-0-image-a-2_1448300073712.jpg

DarthWD56

Dec 9, 2015 10:38 AM CST

Lollll so basically the only way to make Yahoo profitable is get rid of everything else and rid on the coat tails of Ali Baba. That makes complete sense.